Ericsson layoffs: CEO Borje Ekholm says telecom giant to continue job cuts amid 5G market woes

Swedish telecom equipment maker Ericsson expects to continue laying off employees as part of ongoing cost-cutting and restructuring efforts, CEO Borje Ekholm said Friday.

“Last year you saw that we reduced headcount by, say, 5,000, and we expect to continue reducing headcount in the future,” Ekholm was quoted as saying on a post-earnings call. Reuters.

Ericsson announced earlier this year that it planned to cut up to 1,600 jobs in its home country of Sweden, a move aimed at securing the company’s competitive position, a press release said.

These cost-saving measures have helped the company maintain profitability and generate strong earnings even as telecom operators continue to witness stagnant demand in the global 5G equipment market.

Previous round of layoffs

In mid-January, Ericsson submitted a notification to the Swedish Public Employment Agency stating that approximately 1,600 positions in the country could be affected. Negotiations have also started with the relevant unions.

The telecom equipment maker has been working to cut costs and improve margins in recent years. The company has struggled with weak demand as expected carrier spending on 5G technology has fallen short of expectations. Mint It was previously reported.

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Ericsson has steadily reduced headcount over the past three years to maintain profitability as it grapples with a slowdown in 5G spending and the widespread impact of sweeping US tariffs.

The company announced a global plan to cut 8,500 jobs in 2023, equivalent to 8% of its workforce. The cuts have continued since then, with the company laying off hundreds of staff in Spain and Canada last year.

The 5 largest companies plan layoffs in 2026

Ericsson is not the first company to reduce headcount; because at least five major companies announced layoffs in January this year; This reflects a broader cost-cutting trend across the corporate sector.

The job loss trend experienced by companies last year seems to continue in the new year.

Previously, BlackRock announced plans to cut hundreds of jobs this month after Meta announced it would lay off 10% of its workforce in its Digital Labs division.

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Meanwhile, in a report published in Bloomberg, quoting sources familiar with the matter, it was stated that Meta is expected to be dismissed towards the end of this week.

Banking giant Citigroup is also about to lay off nearly 1,000 employees this week as CEO Jane Fraser wants to control costs and increase returns at the company. Mint reported.

In a more recent example, Amazon also announced plans to lay off nearly 30,000 white-collar workers by next week. It was stated that the layoffs could affect the company’s AWS, HR, Prime Video and retail segments. However, it was stated that plans may still change. Mint report.